Sysco Slashes Outlook as Wary Americans Tighten Budgets
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Sysco Corp. lowered its outlook as weakening consumer confidence causes Americans to dine out less.
The wholesale food distributor, which supplies ingredients and packaging equipment to restaurants and other food providers, expects adjusted earnings per share to grow as little as 1% this year, according to an April 29 statement, down from its prior forecast of 6% to 7%. Sales will grow about 3%, down from 4% to 5% previously.
The Houston-based company’s sales and profit missed expectations in its third quarter after orders in the U.S. fell due to wildfires, bad weather and lower consumer confidence, which dropped to its weakest level in almost five years April 29.
Volume growth improved in April versus the third quarter, and Sysco has set up a “tariff management task force” that meets daily, CEO Kevin Hourican said during an earnings call April 29.
“We are pleased to see the relatively stronger start to our fourth quarter, but we are cautiously planning our business for the remainder of 2025,” Hourican said.
Sysco reports third quarter fiscal year 2025 results.
Learn more: — Sysco (@Sysco)
Sysco buys more than 90% of its products within the countries it operates in, and its task force is focused on finding alternative sources and products to tackle price increases, Hourican added.
Sysco ranks No. 3 on the Transport Topics Top 100 list of the largest private carriers in North America and No. 1 among food service carriers.
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